Tuesday, April 14, 2009

Rising Tides

"A rising tide lifts all boats" except, of course, when it doesn't. In the United States, GDP growth began separating from median per-family income in the 1980s, and that pattern continues.

It's worth keeping this in mind when news reports routinely report changes in the GDP but pointedly neglect to report changes in median income. There was a time, perhaps, when the former could be a suitable stand-in for the latter, but this is no longer that time. Increases in GDP (when they happen) are going more and more to those at the very top, and less and less to those at the middle and bottom.

2 comments:

twoblueday said...

Ah, the rich and powerful. They start a class war, and true to their self-serving hypocrisy, when the regular folks bitch a bit the rich accuse them, the lower and middle classes, of promoting class warfare.

And the beat goes on.

Bpaul said...

Excellent catch, seriously.

I didn't know this separation had occurred, and I watch for shit like this. Thanks for the post.

Bp